Feb 2013 Gross Bank Credit Grows at 14.6%

 

On a year-on-year basis, gross bank credit increased by 14.6% in February 2013 as compared with 15.7% in February 2012. Food credit increased by 24.3% in February 2013 as compared with 34.2% increase in February 2012 and non-food bank credit increased by 14.4% in February 2013 as compared 15.4% increase in February 2012.

 

The credit to NBFCs increased by 16.6% in February 2013 as compared with the increase of 30.9% in February 2012. The credit to agriculture increased by 18.4% in February 2013, up from 8% in the corresponding period of last year.

 

Cumulatively, the gross bank credit has grown from around Rs430360 billion during April-Feb 2011-12 to about Rs500642 billion during April - Feb 2012-13 with a growth of 16.3%.

 

 

  Monthly trend in growth of gross bank credit (%)                                                    (YoY)

Source: PHD Research Bureau, compiled from RBI

 

 

Credit to industry increased by 14.7% in February 2013 as compared with the increase of 19.1% in February 2012. The deceleration in credit growth to industry was observed in all the major sub-sectors, barring beverage and tobacco, leather and leather products, wood and wood products, petroleum, coal products and nuclear fuels, cement and cement products, chemicals and chemical products and infrastructure.

 

The services sector credit disbursement increased by 12.7% in February 2013 as compared with an increase of 14.7% in February 2012. Personal loans increased by 13.5% in February 2013 as compared with the increase of 12.2% during the corresponding period of the previous year. Growth in the components of personal loans stood at housing (13.5%), advances against fixed deposits (8.3%), advances to individuals against shares, bonds, etc. (-7.7%) , education (9.5%)and vehicle loans (20.9%).

 

  Deployment of Gross Bank Credit by major sectors                                                                          (Rs. Billion)

Sector	February, 2012*	February, 2013**	February  2012^ over February  , 2011	February , 2013^^ over February  2012
			(%)	(%)
Gross Bank Credit	41797	47911	15.7	14.6
Food Credit	847	1053	34.2	24.3
Non-food Credit	40950	46858	15.4	14.4
Agriculture & Allied Activities	4733	5603	8.0	18.4
Industry (Micro & Small, Medium and Large )	18819	21592	19.1	14.7
Services	9727	10957	14.7	12.7
Personal Loans	7671	8706	12.2	13.5
Priority Sector	13151	15071	10.6	14.6

Source: PHD Research Bureau, compiled from RBI

Note: Data are provisional and are collected on a monthly basis from select 47 scheduled commercial banks accounting for

 about 95% of the total non-food credit deployed by all scheduled commercial banks;

  * Data pertains as on Feb 24, 2012, ** Data pertains as on Feb 22, 2013, ^Data pertains as on Feb 24, 2012 over Feb 25, 2011

^^ Data pertains as on Feb 22, 2013 over Feb 24, 2012

 

 

Warm regards,

 

Dr. S P Sharma

Chief Economist

________________________________________________

PHD Research Bureau

PHD Chamber of Commerce and Industry

August Kranti Marg, New Delhi – 110016

Tel 91 11 49545454, Fax 91 11 26855450,

E mail – research@phdcci.in

Website www.phdcci.in